The release of Giving USA’s Annual Report on Philanthropy provides an in-depth look at the various forces driving philanthropic giving trends. Influencing factors can include market volatility, tax and policy changes, economic sentiment, generational shifts and social movements, to name a few. Understanding the current giving landscape can help nonprofit organizations develop more effective fundraising strategies and better financially prepare for both the short and long term. Below, we outline the top trends and takeaways from Giving USA’s 2025 report.
Top Trends
Increase in overall giving
Philanthropic giving grew 6.3% in 2024 (3.3% when adjusted for inflation), marking the first time in three years that giving has outpaced inflation. The increase was driven by a strong U.S. economy and GDP growth in 2024, as inflation began to normalize, and the market delivered strong returns.
Increase in donations of non-cash assets
With the vast majority of U.S. household wealth held in non-cash assets, they have become a significant source of income for many organizations. However, many organizations do not consistently solicit these types of gifts, largely due to lack of understanding of non-cash gift options.
Who is Giving?
As in previous years, individuals remain the primary source of donations, with an increase of 8.2% year over year (y/y). The increase in giving aligns closely with an increase in U.S. disposable personal income which rose 5.3% y/y (2.2% when adjusted for inflation). The S&P 500®, which rose 23.3% in 2024, can also serve as a key indicator for giving trends as overall asset growth for households can translate to higher giving. This strong economic data should positively influence household giving into 2025; however, the impact of new tax legislation is less certain. A charitable giving tax incentive for non-itemizers was signed into law in July 2025 with a permanent deduction capped at $1000 beginning in 2026. This may encourage giving for the nearly 90% of Americans who do not itemize their deductions. On the other hand, for itemizers, a floor and cap were set for charitable deductions of 0.5% of adjusted gross income (AGI) and 35% of AGI, respectively. This could potentially disincentives wealthy donors from making charitable contributions as amounts above these levels will not be deductible. In recent years, individual giving has been led by a handful of wealthy donors making mega-gifts while the number of small to mid-sized donors decreases. These new tax provisions may disrupt this trend.
Figure 1: 2024 Source of Contributions
Source: Giving USA 2025
Giving by generation
Although baby boomers maintain their status as the largest philanthropic generation, millennials and Gen Z are closing the gap. Since 2022, millennial and boomer donors have the greatest percentage increase in giving, with Gen Z not far behind.1
Younger donors research organizations online before giving, value reporting and impact metrics and make donations digitally using their smartphone and through online giving platforms, social media and crowdfunding. They seek opportunities to be actively involved through volunteering and sharing expertise.
Figure 2:
Giving USA Special Report – Giving by Generation[1] |
|||||
Generation |
Annual giving (2021-2024) |
Motivators for giving |
Types of organization |
Gifting strategy |
Communication preferences |
Baby boomer (Born 1946-1964) |
+27% |
Legacy |
Places of worship, education, military/veterans |
Online giving, DAFs, QCDs & planned giving |
Voice calls, texts, email |
Generation X (Born 1965-1980) |
+12% |
Transparency, community connection |
Places of worship, faith-based orgs, healthcare |
Online giving |
Voice calls, texts, email, social media |
Millennials (Born 1981-1996) |
+22% |
Trust & transparency, impact |
Places of worship, faith-based orgs, healthcare |
Online giving, peer-to-peer fundraising, DAFs |
Texts, social media, email |
Generation Z (Born 1997-2012) |
+16% |
Impact & advocacy, transparency |
Places of worship, healthcare, faith-based orgs |
Online giving, crowd funding, donation at checkout, peer-to-peer fundraising |
Texts, social media, email |
Source: [1] Giving USA Special Report – Giving by Generation
Giving by foundations and corporations
Giving by foundations increased 2.4% y/y, and while many foundations reported an increase in their grant payments, the total amount remained relatively flat when adjusted for inflation. Foundation assets grew due to strong market performance, which led to the increase in grantmaking dollars, but the amounts were not enough to beat inflation.
Giving by corporations and corporate foundations increased 9.1% y/y (6% when adjusted for inflation), including cash and in-kind contributions. Corporate giving is heavily influenced by GDP and corporate pre-tax profit growth. In 2024, U.S. GDP grew 5.3% y/y, while corporate pre-tax profits increased 11.4%. Corporations are fiscally well positioned for strong charitable giving in 2025; however, legislation and tariff uncertainty may cause a decline. The newly enacted 1% floor on corporate charitable contributions may cause a significant decrease in corporate giving. A study by Ernst & Young commissioned by Independent Sector is predicting an annual reduction of approximately $4.5 billion.2 Historically, corporate giving has averaged 1.1% as a percentage of corporate pre-tax profits.
Who is receiving gifts?
Year to year, we see shifts in giving trends among the different categories of causes. Analysis of these shifts can help organizations gain a sense of donor sentiment. Over the past year, global conflicts, natural disasters and a shifting political landscape have not only captured news headlines, but have also influenced where charitable dollars have been directed.
In 2024, religion continued to receive the highest percentage of all donations, at 23%. However, although giving to religion grew by 1.9% since 2023, it declined on an inflation adjusted basis by 1%. With the exception of giving to individuals, all subsectors experienced an increase in giving, even when adjusted for inflation. Four subsectors even reached all-time highs in 2024: education, health, environment & animals, and arts, culture & humanities.
The largest y/y increase in giving was directed to public-society benefit causes, with 19.5% growth (16.1% when adjusted for inflation). This subsector includes organizations that focus on civil rights, community development and advocacy, and grantmaking foundations, which includes DAFs sponsored by national organizations, such as Fidelity Charitable or the PNC Fund for Charitable Giving. The significant rise in giving to this category can be partly attributed to responses to headline-making global and social issues, but also to the continued rise in popularity of DAFs as a giving vehicle.
Figure 3: 2024 Share of Contributions
Source: Giving USA 2025
DAFs continue to increase in popularity
DAF popularity has risen among all types of donors. Individuals and families of all income levels have cited the tax advantages, ability to contribute non-cash assets, opportunity to grow philanthropic investment, and ease of use as reasons for utilizing a DAF for charitable giving.
- Among the 50 largest donors in the United States, total giving to DAFs grew nearly 300% compared to 2023.
- The subsectors receiving the largest share of DAF distributions differs from the overall giving trends — education received the largest share of DAF dollars (27%), followed by public-society benefit organizations (17%) and human services (13%).
- While a large number of assets are being invested in DAFs, some believe not enough is being distributed to charities. A look at the data shows that the flow rate of DAFs, measured by a ratio of grants to contributions, is 92%, meaning for every $10 contributed to a DAF, over $9 is being granted out.
Action items
- Prioritize donor retention. While trends can motivate you to pursue new donors, it is much easier to retain and grow donations from your current donors than to acquire new ones.
- Don’t ignore your mid-level and smaller donors. While major gifts can be transformative, small and mid-level donors will make up the majority of your donor base. With the recent changes to the tax law, these donors may increase their contributions while major donors and corporations pull back.
- Solicit contributions from DAFs.
- Ask current and potential donors if they have a DAF and ensure they know they can use it to make a contribution to your organization.
- Promote DAF giving on your donation webpage and make it an easy payment option.
- Highlight DAF gifts in your marketing materials and take advantage of DAF giving campaigns like #HalfMyDAF or DAF Giving Day.
- Make sure to thank the donor, even though the gift is sent from the sponsoring organization.
- Focus on your planned giving strategy. The vast majority of U.S. household wealth is held in non-cash assets, and yet many nonprofits are not soliciting these types of gifts. Some easy ways to get started is to ask donors to list your organization as a beneficiary in their estate plans as a bequest and on their IRA, 401(k) or 403(b) plans. Explain to your donors ages 70+ that they can make a Qualified Charitable Distribution from their IRA.
- Get the next generation involved. Cater to the aforementioned preferences of the next generation of donors by take the following actions:
- Invest in technology that enables them to easily support your organization using their smartphone and digital donations tools. Utilize social media and crowdfunding campaigns. And consider reducing your focus on emails. While it remains an important donor communication tool, many marketing and solicitation emails end up in spam or the trash bin.
- Make sure potential donors can easily learn about your organization by making your annual impact report, financial reports and IRS Form 990 easily accessible online.
- Promote opportunities to volunteer (including skills-based and virtual volunteer opportunities), join your board or a committee and advocate for your mission. This will inspire supporters to build ties to your organization, encouraging them to give personally and nominate you for support from their employer.
- Speak to your current corporate funders. Ask about any planned adjustments to their giving strategy. Remind them of your mission alignment, the importance of your work and your plans to promote their philanthropic support to the community and their customers.
- Consider the responsible use of new technology. AI and other digital tools can help reduce the administrative burden on your staff, allowing them to spend more time engaging with donors. Read our Nonprofits and AI whitepaper for tips on how organizations are responsible adopting AI into their work.
Conclusion
Philanthropic giving is shaped by a range of complex factors and events. Over the past five years, there has been no shortage of these as nonprofit leaders have needed to quickly adapt to effects from the global pandemic, ongoing economic volatility, social movements, and political and policy changes. By analyzing how these factors have impacted philanthropic trends, nonprofits can refine their fundraising strategies, adjust where necessary, better understand donor trends and preferences, identify opportunities and potential challenges, and more accurately forecast income—allowing organizations to build financial resilience and adapt more effectively to changing conditions in the future.
Nonprofit Strategy & Solutions Group
PNC’s Nonprofit Strategy & Solutions group serves as a dedicated partner committed to empowering nonprofit organizations to achieve their missions. By combining national expertise with local knowledge, we provide comprehensive education and advice on governance, philanthropy and financial sustainability — going beyond asset management to deliver actionable insights that address the most pressing challenges nonprofits face. With our deep community ties, practical nonprofit leadership experience and strong local market presence, we provide meaningful solutions that optimize resources and deliver a sustainable impact. For more information, contact the team at IAMNonprofitStrategy@pnc.com.
TEXT VERSION OF CHARTS
Figure 1: Source of contributions (view image)
| Source | Contribution Percentage |
| Individuals | 66% |
| Foundations | 19% |
| Bequests | 8% |
| Corporations | 7% |
Figure 2: Share of contributions (view image)
Giving USA Special Report – Giving by Generation[1] |
|||||
Generation |
Annual giving (2021-2024) |
Motivators for giving |
Types of organization |
Gifting strategy |
Communication preferences |
Baby boomer (Born 1946-1964) |
+27% |
Legacy |
Places of worship, education, military/veterans |
Online giving, DAFs, QCDs & planned giving |
Voice calls, texts, email |
Generation X (Born 1965-1980) |
+12% |
Transparency, community connection |
Places of worship, faith-based orgs, healthcare |
Online giving |
Voice calls, texts, email, social media |
Millennials (Born 1981-1996) |
+22% |
Trust & transparency, impact |
Places of worship, faith-based orgs, healthcare |
Online giving, peer-to-peer fundraising, DAFs |
Texts, social media, email |
Generation Z (Born 1997-2012) |
+16% |
Impact & advocacy, transparency |
Places of worship, healthcare, faith-based orgs |
Online giving, crowd funding, donation at checkout, peer-to-peer fundraising |
Texts, social media, email |
Figure 3: Share of Contributions (view image)
| Subsector | Contribution percentage |
| Religion | 23% |
| Human Services | 14% |
| Education | 14% |
| Foundations | 11% |
| Public-Society Benefit | 11% |
| Health | 10% |
| International Affairs | 6% |
| Arts, Culture and Humanities | 4% |
| Environment/Animals | 3% |
| Individuals | 4% |
